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The Kudlow Report

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

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Us 12, Virginia 11, Christie 10, Don Luskin 9, Ari 8, Chris Christie 7, Bill Kristol 6, Jim 6, Yellen 5, New Jersey 5, Europe 4, Phil Musser 4, America 4, Kristol 4, Obama 4, Ken Cuccinelli 4, New York City 3, New York 3, Stacy 3, Larry Kudlow 3,
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  CNBC    The Kudlow Report    News/Business. Larry Kudlow. Larry Kudlow provides his  
   unique perspective on business, politics and investing. New.  

    November 4, 2013
    7:00 - 8:01pm EST  

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remember what the fellow from the new york stock exchange said. smart people figure out the valuation. i'm trying to tell you i think north of $20 billion is going to be dangerous. okay? i always like to say there's always a bull market somewhere. i promise to try to find you right here just for you on "mad money." i'm jim cramer. i'll see you tomorrow! as the obama care rollout continues to fail, the question tonight is this. is president obama's entire second-term agenda and ability to govern now in jeopardy? as mitt romney now says, the entire foundation of the obama presidency is rotting away because of broken promises and fundamental dishonesty. and here's the latest blow to the new law. a new study predicts as many as 129 million americans will be dropped by their current plans and be forced to buy much more expensive plans instead. the author of that study is going to join us live. and we're just a few hours
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away from election day. two key races in new jersey. a big chris christie win might make him the gop presidential front-runner. and in virginia, can republican ken cuccinelli pull a fast closing upset? those races tomorrow night. all those stories and much more coming up in "the kudlow report" beginning right now. good evening, everyone. i'm larry kudlow. this is "the kudlow report." we're live here at 7:00 p.m. eastern and 4:00 p.m. pacific. we have more headlines breaking today on the failure of obama care. here's the latest. a new study shows up to 129 people could lose their current health plans and face an average premium hike of 41% because of obama care rolls. we have more on that in just a couple minutes from the author of the study. and documents acquired by nbc show that administration officials are worried that more and more americans will be
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angered when they learn about the real costs of obama care and that they may lose their doctors. but the big story is this. because of the obama care failure, president obama's entire second-term agenda is now in serious jeopardy. just listen to what mitt romney had to say on "meet the press." >> i think that fundamental dishonesty has really put in peril the whole foundation of his second term. i think the key thing that the president is trying to get away from, and that is that he told people he could keep their insurance, and that was not the truth. and whether you like the model of obama care or not, the fact that the president sold it on a basis that was not true has undermined the foundation of his second term. i think it's rotting it away. >> all right. so is mitt romney right on "meet the press"? is president obama's second term rotting away? and is obama care busting him the way he thought he was going to bust the gop for the 2014 midterms? how things change.
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all right. we are pleased to be joined tonight by bill kristol, he's founder and editor of "the weekly standard" and a very old front. great to see you. also, reuters krblgter and cohost of msnbc's "the cycle" and jim from the american enterprise institute. and in a moment, chris conover is research scholar at duke's research for health policies. i want to start out with my friend bill kristol. welcome to the show. romney really lowered the boom. rotting away, fundamentally broken promises. bill, does he have a strong point here? is obama's second-term agenda now in the dumpster? >> i think obama's first-term agenda is at risk. what was the heart of the first-term agenda? it was obama care. and i always thought it could be repealed and replaced and i think the prospects are greater now than they have been, the prospects of really removing parts of it, delaying parts of it, but actually i think getting rid of parts it in the next year
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or two are much greater than i would have thought. i think the case for appeal is becoming increasingly obvious. fri friedrich, call your office. failing in two ways. they didn't ntd what they were doing. you can't understand what you're trying to do if you try to remake the health care system all at once in a bunch of rooms in the white house. and secondly, the coerciveness of it. when you begin down that road of telling people, gee, you can't have that health insurance plan you don't want. now there's someone running in my distinct in virginia for the house of delegates. she's decided, well, doctors probably will have to be forced to accept medicaid patients because that will be necessary to make the system work. and i think people are seeing the kind of intrusiveness and coerciveness as well as the wastefulness of it and saying no way. >> and losing your doctor. i put it bluntly. the liberal entitlement state dream is crumbling before our eyes. okay? that's the way i look at it. and ari, i'll take it to you because i think as bill kristol
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suggested, i think this has tremendous political ramifications that even obama may not yet fully understand. >> well, we could test some of those tomorrow. virginia is a race where you've had republicans try to run on obama care. it's a state that's traditionally leaned to the right. but i think the democrats are looking very strongly in there. we'll see what happens. in new jersey, chris christie is seen as a moderate by some, and he has participated in aspects of the affordable care act including the medicaid expansion. i just don't think when you go to the politics of it with all due respect to bill kristol's vision, i don't think the politics bear out that you can run on saying we have no alternative and we hate obama care in case, hey, you didn't notice that during the last election. it's a losing message for republicans, and we'll test that again tomorrow. >> bill kristol, is this a losing message to republicans? ari melbourne is a very bright guy left of center, bill. usually he makes a lot of sense, but now he's telling me this is a losing message to republicans. i find that incredulous.
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what's your quick take before i get to jimmy p.? >> well, we'll test it out both tomorrow and especially a year from now. i wouldn't say mitt romney ran against obama care nearly as much as he could have or should have. he wasn't well positioned to do so as the author of romney care. we'll see over the next year. the i agree, nothing is certain. i do think you could have a pretty big wave against obama care. >> jimmy -- >> go ahead. >> let me go to jimmy. go ahead, jimmy. what were you going to say? >> listen, the athe core of the obama presidency is the idea that conservatives republicans have had it wrong for 30 years. government can do things. government is competent. anyone who read "the washington post" story this weekend about them putting together with a bunch of political people, you know, and policy experts, what is essentially a huge start-up with no private sector experience. no one's ever run anything, built anything. what a fiasco is it is. now we're supposed to trust
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government to what? put together a cap and trade system? put together a complex immigration reform system? forget about it. people aren't going to go for that. >> this kind of central planning, this kind of central planning went out of style, i don't know, 30, 40 years ago. as bill kristol said, the fatal conceit. the soviet-style central planning. to think that we can reinstitute that in the united states is nuts, but that's just my view. i want to bring in steve conover. you've got pretty impressive numbers here, and 129 million people according to your plans, according to your calculations. 129 million people either lose their insurance or have to get much higher premium insurance. is that true? how'd you get there? >> well, that is true. spinners like david axelrod have been claiming that this problem will only affect 5% of americans. the people that are getting nongroup coverage. that's not true. that's absolutely false. this problem of losing coverage
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is going to affect employer -- people with employer-based plans as well. now, out of that 129 million, only 18 to 50 million actually will lose their plan and have to start from scratch. but the rest will be ending up buying more expensive coverage because they have to pay for it. >> those are big numbers, chris. the top of the ranges are huge potential numbers. and then your second point, which is coming out this memo that nbc got, the obama administration now realizes premium increases may be just as damaging as the pink slips to end the insurance plan. >> well, the premium increases are going to be very large. that 41% figure you were talking about, that relates to the nongroup market. that's not necessarily the amount that's going to happen in the employer-based market. but certainly the average american is going to be paying more for health care -- or health care premiums under obama care. i think there's little question
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of that. i'm also pretty sure that if the americans had had known that 129 million would lose their plan in some form or fashion, i'm pretty sure obama care could not have passed. >> so we really have -- bill kristol, it really goes back to what romney said. romney was on target. we didn't know. the president solved this on the basis of promises that he could not keep. and we're now learning that underneath all this rhetoric, the staff of the white house knew that this stuff was coming. now, politically, bill, is this grist for the gop? does this erase the negative problems of the republican blame shutdown? does this make it a whole new ball game for 2014? >> i think it swamps the shutdown. i always have. the shutdown was a kind of minor derailment. this is a train wreck. but republicans need to have an alternative. the most important thing over the next couple months is for republicans is to focus on the problems, to propose practical solutions to these particular problems so someone who calls his congressman's office and says i've just got a termination
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notice. the congressman says i've got legislation that will let you keep your health care plan for another year. but then also soon for republicans to be able to say we have a big conservative health care reform that's thought through, that will help americans have affordable care, that will help the uninsured cover themselves, but that will not be intrusive or coercive in the way obama care is. >> i've got to -- i want ari to respond to this. i still come back, ari, to this problem, not only are you getting the cancellations, not only are you getting the premium hikes, but this idea of central planning, okay, people want to make choices on their own. people want to know -- and that includes me -- why can't i have the freedom to make my own health care choices? you know, if i go down the list, i've done this before, okay? at my point in life, i don't want lactation and maternity services. i don't want abortion services. i don't want speech therapy. i don't need mammograms or fertility treatments. why can't i buy a plan that would be out there that has the
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stuff that i need? why is the government forcing me, as kristol said, coercing me, to buy these other plans? i want freedom, not coercion. >> well, if we put aside some of the rhetoric, and bill kristol studied the health care issue for many decades, i think he will agree with me on a factual point which is there is no single health care plan called obama care. there's an affordable care act that has various rules and regulations. and then in the absence of employer-based coverage, triggers certain options at the state level which is what conservatives say they want with states that are willing to participate. and in the absence of that, the federal exchange. it's not perfect. i was a supporter of lower the medicare age, which is something that conservatives and joe lieberman talked about doing up until the point wrerp about to do it in which case the bottom fell out of it. that's why this approach, with an individual mandate, was originally the conservative alternati alternative. the problem here and the good-faith problem for some, not all, but some republicans in congress is, again, to mr. kristol's point, they don't have
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the alternative. and every time we get near something they once proposed, they don't like it anymore. >> i think i can sum up ari's answer to your question. too bad. we're all in this together whether you want it or not. too bad. >> with all due respect -- and it is ari, like safari. you want to hit the pronunciation correct. >> don't they say it's too bad? he's got to take it because that's what you've decided. >> no, respectfully, i spoke with specificity about how the insurance market works and why there isn't one plan you're being forced into. and by the way, for people at the lower income options, if they want to pay $95 in the penalty, they can opt out completely. the plan is relatively not very coercive as compared to a lot of other things the government does on a factual level. >> come on, ari, with all due respect, you're somebody i respect enormously. you take a look at these plans, they're basically one size fits all. they have, what, eight or ten criteria. the major differences in these plans is the financing issue between the premium and the
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deductibility. as far as the low end is concerned, they're all going into medicaid. in fact, the real story here so far, the real story is that enrollment is down for the exchanges. it's minuscule. and everybody's going into medicaid. the people going into medicaid, we are going to bust -- we are going to bust medicaid, make it even more bankrupt now than it already is. >> in 4 states, they're being kept out of medicaid by the decisions of those states. >> yeah, but more than half the states, medicaid is the big winner. bill kristol, i'm going to give you the last word. are the democrats going to revolt against this? you see this gene shaheen, senator shaheen and others. democrats who voted against every effort to delay obama care this summer. do you think they will, in fact, follow through with new efforts to delay obama care in the autumn? >> yeah, i think it fends what happens this week. they're home this week, the senate and the house are not in session. if they hear this from their constituents, i think democrats will have a tough time explaining to people, if they have an insurance plan they
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like, they want to keep it, the exchanges aren't working anyway, just practically speaking the website's not working. people's insurance expires in many cases january 1st. what are they going to do? they deserve some certainty here. i think the pressure on congressional elm dids will be much greater than it has been for the last couple of months. >> bill, hope to see you soon. come back on "the kudlow report." thanks also to chris conover. we appreciate your numbers and analysis. jimmy, ari, you'll be back with us in just a couple of minutes. we have more to parse through. now the big story on wall street today, all about law and order. hedge fund giant s.a.c. capital and steven cohn settled with the government for $1.8 billion. but is cohn in the clear? and who really won this cattle? cnbc's kate kelly has a report for us just ahead. later on, obama care has become the number one issue in the hotly contested virginia governors race. voters go to the polls tomorrow. question, will the catastrophic health care launch enable republicans to snatch victory from the jaws of defeat?
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we'll take a close look at it. and folks, as always, don't forget, free market capitalism, the beth path to prosperity for the 100 millionth time, obama care has nothing to do with freedom. i'm kudlow. we'll be right back. when we made our commitment to the gulf, bp had two big goals: help the gulf recover and learn from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, where experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.
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s.a.c. capital steve cohn's hedge fund is paying to settle insider trading charges. kate kelly joins us with all the details. good evening, kate. >> reporter: it was obviously a big day for s.a.c. capital and the u.s. government which agreed to a settlement of $1.8 billion over charges that s.a.c. repe repeatedly engaged in insider trading. as part of this, they'll also plead guilty to securities fraud and wire fraud and surrender their registration as an investment adviser. judges need to sign off on this. there will be a public courtroom appearance and a guilty plea as well as a sentencing. and then the tough business of unwinding s.a.c.'s current third-party investments will begin. most of it's a simple process, but some of their investments are illiquid.
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at a press conference today with u.s. attorney barrara, a lot of tough questions about why s.a.c. founder steve cohen was not himself personally implicated. he was defensive. >> it is a rare thing for any entity. it is difficult to plead guilty to everything it's been charged with and of the magnitude that we have described it. >> reporter: so barrara as well as his counterparts at the fbi not ruling anything out, saying they'll continue to pursue these case, larry. but for now a big day for the entity of a.s.s.a.c. >> many thanks. appreciate it. is this s.a.c. settlement a market mover? what is the message here? here two cnbc contributor, founder and ceo of kkm financial. all right. jeff, is this a market mover?
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is this a game changer? how do you look at this decision? >> i don't think it is, larry, to be honest. this is not a market mover. let's be clear, stevie cohen was not pleading guilty. it was s.a.c. capital. obviously, is it worth $9 billion? he's the 40th richest man in america. he's a target. obviously this case is not over from that regards. but honestly, i'm the ultimate optimist. i think they're still innocent. full disclosure, i believe lance armstrong was still innocent until he uttered the words that he did use. >> no, don't go there. i don't want to discuss that. i do want to go to my pal, don luskin. is there any particular message here? does this s.a.c. decision affect the market in any way? >> no, i don't think this is a fire sale forced march unwind like long-term capital management. this is not market affecting. i'm happy to say that we're in a world now in 2013 where for the first time in six years, even if there were some highly illiquid
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positions that they had to get out of in a hurry, nothing's contagious anymore. the world's a safe place so it's fine. you know what's not safe, though? it's not safe to be the 40th richest in man in the world. if they can't get you, they'll get your entity and they'll go after you and keep planting stories about your art collection and your mansion. as those things were prima facie evidence of your guilt and corruption. that's what's wrong with america. >> don luskin makes important points. i don't have to pass judgment. i don't know all the details here. is there, in your opinion, jeff, some class warfare involved in this? is there? >> absolutely, larry. look at mark cuban. he stuck up for main street. he could have paid a lot less monday to settle the s.e. krrchgts. k s.e.c. kudos to him. don's right, they're not picking on losers. everyone goes for the top dog. and unfortunately, he's one of the top dogs here. the 40th richest man in america. >> we'll leave it there, gent
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gentlemen. stick around. now we're going to talk stocks and sinking energy prices. and oh, yeah, my gal, janet yellen, empress of the doves. her reign is about to begin. that's next up on "the kudlow report." honestly, as much as i love this job, i plan to do a lot more. i needed a new laptop for my pre-med classes, something that runs office and has a keyboard. but i wanted a tablet for me, for stuff like twitter and xbox, so my downtime can be more like uptime. that's why i got a windows 2 in 1 which does both -- works as a laptop and a tablet.
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so i can manage my crazy life, and also have a life. [ beep ] gotta go. ♪
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i got this. [thinking] is it that time? the son picks up the check? [thinking] i'm still working. he's retired. i hope he's saving. i hope he saved enough. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. whether you're just starting your 401(k) or you are ready for retirement, we'll help you get there. welcome back to "the kudlow report." welcome back to "the kudlow report." stocks posting only small gains today as investors are still worried about when the fed will start tapering. the dow up 23, s&p adding 6, and
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the nasdaq up 14. the dow and s&p are on pace for their biggest annual gains since 2003. on the street saying those big gains, good reason to sit back and wait for friday's big jobs report, larry. >> thanks very much, sheila. appreciate it. let's get back to our ace investors, jeff kliburg and don luskin. >> i've been called worse. >> we all have. jeff, let me just start on one thing that wasn't mentioned that i think is a big factor in the market. crude oil prices falling. what are they down, $94.50. retail gasoline prices are falling. in fact, it's been reported in some states, retail gas has a $2 handle to it. other commodity prices in the energy area are falling. >> natural gas. >> what's this mean, falling energy prices means what? >> big relief to middle america. you talk about this, going to the pump, that makes you feel better. larry, to be honest with you, once you get that sentiment change, that consumer behavior
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change, maybe fiscally, the numbers don't come out, but mentally there's a big impact and a big shift. so if anything, i think that will help kind of comfort any american out there in the event we have this correction that everyone's looking for. gas is cheaper. that makes people feel better. >> don luskin, is this enough to create a consumer tax cut? is this enough to boost the economy? >> look, there's a demand side way of looking at it and a supply side way. the demand side way is having to spend so much on gasoline crowds out other expenditures. i like the supply side way. when gas is cheap, you can buy more gas. you can drive a car that will fit your whole family. you can live in a home that's further away from your work. you can go to home depot and buy more stuff. gas is the stuff of growth. for the last ten years, we've been spending 3% of gdp on gas. that's too much. during the reagan years and the carter years, we were spending 1% of gdp on gas. that's what makes growth possible. we could get back there again. we just need a republican congress and a republican president to take the chains off
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fracking. we could have 50 cent gasoline. >> i'm -- i'd love to take the chains off fracking, but we had a much stronger dollar. during the reagan years, we had a much stronger dollar. if memory serves me, the price of crude oil at that point, global price went from about $40 a barrel all the way down to about $12 a barrel by 1985, 1986. >> larry, i'm afraid the strong dollar thing, you're going to have to take that up with chairwoman yellen, and good luck with that. >> i know, the empress of the doves. i don't want to be too pessimistic, but i want to ask you about another international event, europe. there's a lot of talk. europe may be heading for a double-dip recession. europe may be heading for deflati deflation. the european cpi was, what, 0.7 or 0.8%. the european central bank, by some balance sheet measures, the balance sheet is shrinking. and they are way too tight. how big a threat is europe?
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>> it is a threat, but i think with the ecb, mario dragi, his biggest weapon over there has been his microphone. and when you see him promise like he did last september that he'll do whatever it takes, it resonates with investors and recruited a lot of money back to new york. we've seen a lot of folks investing in the last six months over there. they are susceptible to a downturn. by the end of the day, there's a put like there's a bernanke put here. >> he's got to take action. i think the time for words -- he's got to start pumping more cash into the economy. don luskin, let's talk about pumping cash into the economy. janet yellen, my favorite new central bank governor. i've promoted her from the queen of the doves to the empress of the doves. i don't see any tightening any time in the foreseeable or nonforeseeable future. what's your take on her? >> look, she is not ben bernanke. she's not an academic, a skeptic, an eclectic. she is a big-government gal. she is from the government. she is here to help us. and unless she sees visible,
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horrific signs of inflation, she is going to drop more money out of more helicopters because she doesn't want to think about the risks. she believes, like all big-government people do, that if your program didn't work the first time, just do it again bigger. she's going to be buying bonds and mortgage backs till we got a 4.5% unemployment rate. >> if don luskin is right, and i suspect he is, and if the inflation rate goes to 3% or 4% deliberately, if the fed can do that, i don't know that they can, but if they do, is that bullish or bearish for stocks? >> well, i think it's bullish for stocks, but let me head butt don, with all do respect, just like the bears are going to stick the packers tonight, yellen has been painted the largest dove of all time. let's rewind to 2005. she was one of the few top brass at the fomc that stated there was a housing bubble in california. so maybe she comes in, she wants to clean the slate, check everyone, don included. and she comes in here and does the taper a little bit earlier
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than the whole street thinks because here in chicago, big week ahead for stocks obviously on data, we are looking at the data. and if we get anything above 150 on the jobs number, that is ammo for yellen to come in here. >> i need an answer here. hold on. hold on. i need an answer. are you a seller, then, therefore? you think janet yellen is going to be hard money, sound dollar, anti-inflation, next thing you know you're going to tell me she's a supply sider. in that contest, she's going to tighten sooner. does that mean you sell stocks? >> brace for the best buying opportunity we've seen in a long time, larry. i think there will be a dip, an initial reaction to sell. i think that's when you come in and buy. at the end of the day, a lot of these companies are leaner and meaner. and the market does want to go higher. the initial reaction will be selling, yes. >> last one, i'll give you the last word, don luskin. by the way, leaner and meaner, kellogg's slashing, what, 7% of their work force. buy or sell right now, don
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luskin? you get the last word. >> i'd be a buyer. i think stocks are going to be 30%, 35% higher 12 months from now. yellen or no yellen. one thing jeff and i can agree on, go bears! >> thank you. >> all right. >> don luskin and jeff kilburg, great stuff. we've talked about the bad website. we've talked about the sticker shock from higher premiums. but perhaps the most devastating result of obama care will be the millions of americans who will lose their doctors. one cancer patient wrote about just that in a "wall street journal" op-ed today that caused a sensation. we're going to talk about her story next up on "the kudlow report." >> i was diagnosed in march of 2007. and the first thing that hits you with the terror of you have cancer. that's probably the most scared moment of your life. you're terrified. and your life becomes a life of unknowns. i'm fighting cancer not because i'm afraid to die. i'm fighting cancer because i love to live. i am today by luck.
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i put in the hours and built a strong reputation in the industry. i set goals and worked hard to meet them. i've made my success happen. so when it comes to my investments, i'm supposed to just hand it over to a broker and back away? that's not gonna happen. avo: when you work with a schwab financial consultant, you'll get the guidance you need with the control you want.
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talk to us today.
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welcome back to welcome back to "the kudlow report." i'm larry kudlow. in this half hour, we're just hours away from key governors races in virginia and new jersey. and then there's the mayors race in new york city. now, just look at the front page
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of today's "new york post," depicting what the city might expect with uber leftist bill de blasio expected to win in a landslide. that's the "new york post." story, by the way, we first brought you back in july. obama care will hurt cancer patients, and it's turning out to be more of a painful reality than first thought. take the personal story of edie who in today's "wall street journal" op-ed shares her journey to survive stage 4 gallbladder cancer. she's been fighting it for nearly seven years which has a five-year survival rate of less than 2% after diagnosis. god bless her. but like millions of others, she's been told her existing and excellent health care plan is being canceled. yet after weeks of searching the obama care exchanges, she has been unable to find a plan which will also cover her already-trusted oncologist and other doctors. we wish edie godspeed for her continued recovery, but her story begs the question, with
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obama care, you're going to lose the doctor, too. joining us now is ohio republican congressman brad wenstop who just announced today that he and his staff will beer interesting the obama care health insurance exchanges, too. we also welcome back ari melber and jimmy p. congressman, just tell me about this. i'm not going to say it's a sleeper story, but as part of the cancellations, people are going to lose their doctor, too. you're a physician. that could be absolutely fatal for this brave woman and so manile manies like her. >> you know, god bless this poor lady. and like you said, millions like her. you know, as a doctor, there's something that you could always provide for people who you go in and you talk to them and you hold their hand and put their head on your shoulder and say we're going to do everything we can to help you and we're here for you and try to take away some of their anxiety. but right now you have people very sick, and you take the anxiety that comes with having a
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disease, and now you add all the questions of whether you'll have coverage, and in this case you won't have coverage, that makes it pretty daunting and makes it difficult for the doctor and the patient. >> see, ari, she writes in this, look, that the new plan -- she's referred to the california plan, okay -- too narrow. all right? way too narrow. way too constricting both with respect to doctors and with respect to to health care providers. i believe this is unnecessary. and i believe this is a cost that americans are going to have to bear that they shouldn't have to bear because we should have full freedom of choice. >> look -- >> i would agree. you know, people have always had that in the past. and that's going away. and that makes it extremely difficult. you're exactly right. it's going to be a sad time for health care in america right now. the anxiety and the confusion is at its highest level. and unfortunately, a lot of people are going to miss out on good care that would otherwise be available. >> ari, sorry, i wanted you to tackle that. >> sure. >> look, she's just got this
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awful choice. she's got the university of california-san diego. she lives down in san diego, all right? basically she said, you know, they're keeping her alive. she's also got care up at stanford university. all right? so the two fabulous places. they both have great doctors. but she can't switch back and forth. in fact, the california system, for some reason, has restrictions on crossing counties, which just strikes me as utterly absurd. >> sure. i mean, look, larry, my heart goes out to her and anyone in her situation and those of us who all know someone who's been in this kind of challenge and the anxiety she's citing is very real. but the fact that she's in potentially a tough spot does not mean that we have to take everyone at face value who wants to use her or people in her situation for a precooked agenda against the affordable care act. and i give you the example again of medicaid where a great number of republicans, including republican legislators in 24 states in this country, have
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worked to prevent the poorest americans from getting on medicaid, a system already in place and that works. so when those same people want to come along and pluck this or that story or person no matter how good that person is and how much we want to worry about them, it strikes me as potentially very disingenuous and problematic for the discussion. now, as for the doctor choice, it is true that there are problems -- >> go ahead, jimmy. >> i'm going to, again, translate, ari, too bad. that's just the way it goes. that's the way that we have to break a few eggs. remember, let's say 5%. let's say all 15 million lose their health care. who cares? oh, wait. it was only 10%. >> jim, do you support medicaid funding for people, americans who are uninsured? >> jim? jim? do you support health care funding? yes or no? >> time out. time out. time-out. ari, hang on, please, gentlemen. please, please. ari, hang on. >> jim won't answer the question either. >> jimmy p.
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just briefly repeat what you said and then ari will have his shot at it. go ahead, jimmy, i'm sorry. >> 5% of americans is no big deal if they lose their health care plan. yet 10% of americans who didn't have health insurance, that was enough to create this brand-new health care system. 10%, let's act, 5%, who cares? >> ari, what's your reaction? >> my reaction is jim's raised this twice now. this is for new viewers, the second time he's mischaracterized what i'm saying. and the sad part is he won't speak to the facts which is apparently he does not support or won't say whether he supports one of the most fundamental parts of the affordable care act which is extending coverage to the poorest americans. this woman's story is touching and problematic, and i've said on the record the fact that the website isn't giving her the information she needs to replace her plan is a real problem. but i will not sit here and listen to disingenuous politically motivated grievances. >> you have no idea what i said. you have no idea. in fact, i have come out in the past for transforming the medicaid system from what it is, which is a disaster, into
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allowing poor americans to du actually buy private health care plans. that's what i've been for. >> if you don't support it today under the program, it will fall under the category. >> your malfunctioning plan, i'm against health care altogether. thanks for the enlightening. >> i think the medicaid issue is a red herring because the states that don't want to add to medicaid are already burdened with massive costs and are worried that the federal government is going to give more. that's a different issue than the one we're talking about. >> i've got to say, if you don't support the health care for those people, then why do you only care about some people? >> a lot of people will die. if you don't want to support the president, then people will die. >> i want to go back to the congressman. there's a memo, nbc news has been quoting this memo. inside the white house, they are worried, congressman, i'm just going to read this out. number one, the more people dig into the website, assuming the websites go back to work, they're going to find limited
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choice, okay, limited choices. that's one of the things we're talking about with this poor woman. sticker shock for all the premiums that are going to go up, and of course, the cancellation march will continue to go on. now, brad, i just want to ask you what the republicans are going to do. when you come back, you're going to let the democrats stew in their own juices. are you going to work with them to delay obama care? tell us what you're thinking on this. >> well, personally, as a doc r doctor, i ran for congress because i wanted to be part of a solution, not just debate the problem. let me go back on a couple of things here. one, you talk about medicaid. i wonder if either of these two gentlemen have ever seen a patient or actually gone through filing a claim and understand what that's all about. but having medicaid does not mean you have access to care. and that's a fact. and so just because you have this piece of paper that says you have medicaid doesn't mean that your doctor takes medicaid. and so it's very disingenuous. we like our safety nets, but personally, i would like to see
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every american covered with a private insurance plan from their job. and that's where we're not going. we're going in the wrong direction. i care about the poor. everyone does. i'd like to get more people working. this plan, obama care, cuts people out of business. businesses are saying we're cutting our employees. we're cutting people to part time. we're not solving a problem. we're pretending to solve a problem. and medicaid is not the answer. they're going to still end up in the emergency room by and large because there's not someone to take care of them. let's have some solutions. let's, for example, talk about hsas. the president reduced the level that you could keep in your hsa account. i'll bet people would like that to be higher now where they could actually pay their deductibles and things like that with pretax dollars. we have a lot of good ideas and solutions, and i'm willing to sit down at the table. >> good. we'll leave it there. thank you, congressman, ari and jimmy. more work to do, gentlemen. now the twitter ipo is just two days away from pricing, and interest is growing, and
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blackberry is making a run at staying alive on its own. we've got those stories just ahead. but first, here's our nightly dose of obama care comic relief. >> a new report shows that only six people actually signed up for the affordable care act on its troubled first day. which means that obama care is doing only slightly better than guitar lessons by mike.
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our commitment has never been stronger. welcome back to "the kudlow report." welcome back to "the kudlow report." twitter increasing the price for its ipo. the new range is $23 to $25 a share. that would make the entire company worth about $13.6 billion. there's so much demand that the ipo is now overprescribed. remember, it is expected to price wednesday after the bell and begin trading on thursday morning. call it the blackberry blues. shares of the smartphone maker plummeting 17% today. the company is giving up on the idea of selling itself to a private buyer and will now try to make it as a public company. that will not include ceo thorsten hein. take a look at this chart. now losing 95% of its value since hitting a high of 148 b k
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bucks a share. kellogg's is cutting about 7% of its work force. that amounts to about 2,000 workers. the reason, larry, very simple. the company is just selling less cereal. yogurt is now the new breakfast craze. >> cool. no problem. i like it. nonfat yogurt. >> nonfat. greek yogurt. >> 80 calories. i eat it all the time. sheila, thank you very much. appreciate it. we'll have breakfast together soon. now it's almost election day, folks. and in one race, the continuing failure of obama care has become the number one issue. ken cuccinelli looking for an upset tomorrow in the virginia governors race. but in new jersey, is chris christie about to become the gop 2016 front-runner? and then there's the new york city mayors race. where a genuine leftist about to take city hall. i just have to live with it. stay with us. i'm kudlow.
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this this election eve now, it's unlikely there will be any surprise in two of the most closely watched races. that's tomorrow. new york city, leftist democrat bill de blasio expected to easily beat republican joe loda for mayor. new jersey, governor chris christie expected to easily win re-election and maybe become the gop front-runner for 2016. but it's the virginia race that
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could prove most interesting for governor. polls show democrat terry mcauliffe holding a slim lead over republican ken cuccinelli. quinnipiac has him 46-40. mcauliffe's up 50-43. however, the libertarian has 8 percentage points of the vote. and that comes out of cuccinelli's hide. and ron paul is in there campaigning for him as was rand paul last week. so let's talk. joining us now, republican strategist phil musser, president of new frontier strategy. ari and jim are still with us. phil musser, let me go to virginia. can cuccinelli take -- snatch victory from the jaws of defeat? is that possible? >> hey, i hope so, larry. you know, it's really all about turnout. remember, we have to have 40% of the available vote show up in 2009 for bob mcdonnell's rather historic win. if we have that same number of votes in the polling that we've seen publicly and privately,
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it's probably tough. the way that ken wins tomorrow is if we have a fairly low turnout, more in the 30% to 33% range. he's been focusing on getting his base out. as you just mentioned, he's closing his campaign, sending a message to libertarian supporters and sarvis by having rand paul in saying i'm the pro-liberty guy in this race. >> rand paul was there this past week to say come on, libertarians, come to the gop. and his dad, former congressman ron paul, there right now. so it's very important. but the interesting thing for me, jimmy, i want to get to christie in a minute. jim, the really interesting thing is, the issue has, in fact, become obama care. all right? you live in virginia. i assume you vote in virginia. what do you make of it? >> listen, i think it would be great for ken cuccinelli if he had another couple of weeks. i think this issue might be
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peaking, isn't gelling enough quickly enough for him to catch up. i mean, there is a chance. he might catch a break if there's a lot of obama voters stuck on their computer trying to access any of the exchanges. that might help. but listen. one pro-life tax-cutting gop governor is going to win by a landslide. >> who's that? >> that would be chris christie. >> all right. chris christie. ari, yesterday mitt romney, who was on a bit of a tear in his comments, he said christie could be the nominee and save the republican party. what do you think, ari? put your analytic helmet back on. >> well, look. i think that christie is poised for not only a victory but potentially a coalition victory. and by that i mean he can post numbers in new jersey that show a broader coalition than we've seen republican governors traditionally pull. he wants everyone to look at it as a message to the rest of the country. a quick thought on virginia. phil is right. anyone who's worked on campaigns
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understands it is all about the ooufrls th universe that you turn out. this was an off-year election, but the democrats have seemed energized. the president's visit there was helpful. and if you have higher turnout, then you probably have terry mcauliffe win easily. >> we'll see. i don't know. obama care, the libertarian movement, we will see. phil musser, go back to you. mitt romney mentioned rubio, senator rubio, as somebody that could win the nomination. he mentioned jeb bush as somebody who could win the nomination. and of course, he mentioned his former running mate, paul ryan as well as chris christie. how do you see this race? is christie going to become the front-runner tuesday night? he win let's say by 15 to 19 points. he is the most demanded rubber chicken circuit fund-raiser in the entire republican party, phil musser. is that how it's going to work? >> i think he'll be -- there will be enormous surgery of interest in governor christie. just to give more granularity to ari's point, i'm looking to see how christie does with the
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hispanic community. as we sit here now, governor susanna martinez, the only one with favorable ratings in the stratosphere of christie is campaigning with him. christie could be the republican politician to get 30% of the african-american vote. repeat, christie could be the first politician to get 30% of the african-american vote in a blue state. those are monumental numbers and for a party that needs to come out and win, i think a lot of donors, grass-roots activists and i think both sides of the party have to look at that and be impressed. so it would certainly be a big signal nationally, larry. >> jim, i'm going to leave new york. new york's going left. there's nothing i can do about it. the race is over. >> a good night for the sandonista democrats. >> exactly right. that's what the "new york post" is getting to, soviet union. jimmy, republicans got to go behind enemy lines in blue states. they've just got to. they can't concede all these blue states. that's the thing that interests me so much about christie.
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as you said, he's a tax cutter. he's a budget cutter. he's a pro-life guy. i mean, he may not be the only guy, jimmy, but they've got to find somebody. i'll give you ten seconds. somebody win a blue state. >> yeah. and he's giving a road map how to do it. i think that's pretty powerful. >> great stuff. phil, ari, jim, thanks, everybody. that's it for tonight's show. i'm larry kudlow. thanks for watching. we'll have more election coverage tomorrow night. and more obama care. ♪
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(watch ticking) >> you know, in today's regulatory environment, it's virtually impossible to--to violate rules. and this is something that the public really doesn't understand, but you--it's impossible for you to go unde-- for a violation to go undetected... >> kroft: yes, that's bernie madoff saying it was impossible to do exactly what he did. but one man did try to tell the government what madoff wasp to. how long did it take you to figure out that there was something wrong? >> it took me five minutes to know that it was a fraud. it took me another almost four hours of mathematical modeling to prove that it was a fraud. (watic